(News Bulletin 247) – The flagship index of the Paris Stock Exchange fell 2% this Monday, under the weight of profit-taking and the decline in the automobile sector.

After posting a good performance (+3.9%) last week, the CAC 40 suffered the blow. The flagship index of the Paris Stock Exchange dropped 2% this Monday, returning to 7,635.75 points.

The Parisian market, like all European markets, suffered profit taking. This breathing relegated several meetings that occurred during the day to the background.

In Germany, inflation fell to its lowest level since February 2021, with price growth of 1.6% year-on-year.

“Today’s figures do not definitively resolve the inflation problem. For that to happen, the underlying inflation rate, still high, would have to fall significantly. And this decline has not yet happened. place,” Deutsche Bank said.

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Diving for Stellantis

The intervention of the President of the European Central Bank, Christine Lagarde, before the European Parliament, did not create a stir. The central banker showed her confidence in a return of inflation towards its target of 2% in the euro zone. Christine Lagarde also declared that she “wished” that cross-border banking merger operations in Europe could occur.

The market is now awaiting the speech which will be given by the president of the American Federal Reserve (Fed), Jerome Powell, a little before 8 p.m. this evening.

The big meeting of the week remains the American employment report for September, which will be published on Friday.

The day was especially marked by a black session for the automobile. Three European manufacturers lowered their outlook Friday evening or Monday morning: Aston Martin (-23% in London), Volkswagen (-4.5% in Frankfurt) and Stellantis.

The group led by Carlos Tavares fell 14.74% on the Paris Stock Exchange, the biggest drop in its young stock market history, after having slashed its forecasts for 2024. Which pushed Oddo BHF to lower its opinion on the value from “outperform” to “neutral”.

Forvia, of which Stellantis is one of the largest clients, also plunged, with a drop of 5.8%. Renault, in the wake of Stellantis, lost 5.6%.

On other markets, the euro gained 0.15% against the dollar to 1.1151 dollars. Oil is growing. The December contract on North Sea Brent advanced 1.03% to $72.28 per barrel while the November contract on WTI listed in New York gained 1.06% to $68.90 per barrel.